The island farmers have been trapped in a mounting crisis for months. The spike in feed, transport, and electricity costs driven by the Ukraine conflict shows no sign of easing and could threaten the industry before year’s end. Manufacturers stay agile, farms remain not only profitable but also under pressure, with producers stepping in to shield them. Aid from institutions covers debts but does not solve the core issue, and the promised wage increase negotiated with processors and supermarkets to pay more for milk has not materialized. Since May, a liter of cow’s milk has risen from 0.48 to 0.52 euros, still far below current production costs which hover around 0.63 euros per liter.
